In recent months the and savings deposits in commercial banks have grown at relatively slow rates. The growth of time deposits depends to a great extent on the interest rates banks are willing and able to pay, and on the rates available to savers on competitive assets. Since last summer short-term market interest rates have risen sharply. Yields on three-month Treasury bills increased from 4.42 per cent in September 1967, to about 5.70 per cent in June 1968. Over the same period the yields on 4-to-6 month commercial paper issued by leading business firms moved upward from 5.00 per cent to 6.35 per cent.